Motion to Dismiss

Subscribe to Motion to Dismiss via RSS

On Tuesday, Judge Cronan dismissed for the second time plaintiffs’ putative class action alleging that defendant Supergoop’s sunscreen contains a lower SPF than labeled. Both times, the Court found that plaintiffs failed to establish standing by inadequately pleading injury-in-fact.

Rather than pursuing a direct theory of injury based on the products actually purchased, plaintiffs argued a theory of injury “via indirect means by linking the results of their independent testing of the same product line to the Purchased Products.” The named plaintiffs purchased Supergoop sunscreen on four separate occasions throughout 2023 and 2024. However, they did not test the SPF levels of the bottles they bought. Instead, counsel for plaintiffs arranged for the SPF testing of separate bottles of the same type of sunscreen, purchased in a different month in 2023, on the theory that the testing would apply to “all products by the same manufacturer that have the same combination of active ingredients.”Continue Reading Judge Cronan: Plaintiffs Fail to Allege Injury-in-Fact Against Supergoop Sunscreen, Again

Today, Judge Engelmayer dismissed with prejudice a putative securities class action filed against DraftKings, Inc., and denied Plaintiffs’ leave to replead. Plaintiffs’ Second Amended Complaint alleged that a company that DraftKings had acquired in the course of going public, SBTech (Global) Limited (“SBTech”), had secretly operated in “black-market” jurisdictions, thereby exposing DraftKings to regulatory and criminal risks. It further alleged that DraftKings made materially false and misleading statements about, and failed to disclose, SBTech’s violations of foreign law and their potential consequences.

Plaintiffs argued that DraftKings’s shares traded at artificially inflated prices until June 15, 2021, when a short seller, Hindenburg Research published a report that revealed SBTech’s ostensible operations in black market jurisdictions and the risks to which the merger with SBTech allegedly exposed DraftKings. That day, DraftKings’s shares fell 4.17%.

In dismissing the Second Amended Complaint, the Court focused on Plaintiffs’ reliance on the Hindenburg report without having verified the information contained in the report:Continue Reading Judge Engelmayer Dismisses Putative Securities Class Action Because Allegations Were Based On Unconfirmed Allegations in Short Seller’s Report

Judge Forrest today dismissed a lawsuit brought by former Olympic ice skater Oksana Baiul against more than 20 individuals and entities she accused of stealing more than $57 million she had earned through skating performances and endorsements.  The suit, which Judge Forrest characterized as “frivolous and, frankly, bizarre,” raised 17 claims, including civil RICO, common…